Cardano activity surges after upgrade but price remains uncertain

Cardano (CRYPTO:ADA) has seen a significant increase in network activity following its recent upgrade, with the number of active addresses reaching a five-month high.

Despite this surge in user engagement, the price of ADA remains in a bearish trend, raising questions about whether this renewed interest will translate into a sustained price recovery.

Data from Santiment shows that on September 5th, Cardano’s daily active addresses spiked to over 52,000, marking the highest level since May.

While this figure dropped to around 39,400 the next day and further to approximately 31,600 by September 7th, the initial surge indicates a strong uptick in network activity.

This rise suggests that the recent network improvements may be gaining traction among users, potentially setting the stage for greater participation on the platform in the coming weeks.

The rise in active addresses could be a delayed response to Cardano's recent network upgrade, reflecting growing interest and engagement within the ecosystem.

However, while network activity is up, ADA's price has yet to follow suit.

The token remains in a downtrend, although it has shown some positive momentum over the past 24 hours.

ADA recently closed a trading session at $0.32, a 3.4% increase, and is currently trading around $0.33, with an additional 2.7% gain.

An analysis of Cardano's Relative Strength Index (RSI) reveals that it is still below the neutral line, currently sitting at about 46.

This indicates that ADA is not yet in bullish territory, though the RSI has moved closer to neutral, suggesting a potential shift if upward momentum continues.

If Cardano maintains its current trend, it could signal a reversal, marking the first time in two weeks that ADA has posted consecutive gains of over 2%.

Trading volume for Cardano has remained steady in the $300 million range, peaking at around $340 million.

For ADA to break out of its current downtrend and establish a sustained bullish trend, an increase in both price and trading volume would be essential.

The convergence of rising prices and higher trading volumes could solidify a positive trajectory for Cardano.

At the time of reporting, the Cardano (ADA) price was $0.3384.